If you have a 1099 worker or business contractor, you can pay them in Intuit Full Service Payroll.

At the end of the year, we'll prepare and file your contractor's 1099 with the IRS and mail the Form 1099-MISC to the contractor's address in their Intuit Full Service Payroll profile.

Reimbursements are business-related expenses prepaid by the contractor, that you then pay back to them. They're not part of compensation, and so are not reported on the year-end 1099-MISC form that you file with the IRS.

Note: Intuit Full Service Payroll supports Form 1099-MISC, Box 7 nonemployee compensation only. If you need to report payments in a box other than Box 7, you'll need to file outside of Intuit Full Service Payroll.

What's the difference between contractors and employees?

The amount of control the employer has over the worker determines whether the worker is an employee or an independent contractor (also called a 1099 contractor, freelancer, or self-employed).

Employee Independent Contractor
The employer controls what work must be done and how. Self-employed workers control how the work gets done.
The employer supplies the tools to complete the work. Self-employed workers usually provide their own tools.
The worker is an employee who works, usually exclusively, for the employer. The worker is self-employed and has an independent business serving multiple clients.
Employers pay employment taxes on an employee's behalf. Self-employed workers pay their own employment taxes.
At year-end, employees receive a W-2 form. At year-end, self-employed workers receive a 1099, unless they are incorporated.
As part of your Intuit Full Service Payroll, we prepare employee W-2 forms, file them with the government agencies, and mail them directly to your employees at year end. As part of your Intuit Full Service Payroll, we prepare contractor 1099 forms, file them with the government agencies, and mail them directly to your contractors at year end.

Review contractor details and payments

There are two reports available if you need to review contractor details and payments.

Contractor Details report: Shows all information about current contractors.

  1. Select the Reports tab.
  2. Select Contractor Details.
  3. Select a specific contractor or select all contractors.
  4. Select Run Report.

Contractor Payment Details report: Shows payments made to selected or all contractors.

  1. Select the Reports tab.
  2. Select Contractor Payment Details, and from the Date Range drop-down, select a time period.
  3. Select a specific contractor or select all contractors to see everyone paid within a specific pay period.
  4. Select Run Report.

Refer to Print reports to see information on printing both reports.

Still not sure? See IRS Publication 15, Circular E: Employer's Tax Guide for more info.